The land lease developer has revised its expected new home settlements to 230-240 instead of the previous 250 as new residents take longer to sell their family homes.
Gateway now expects profit margins of $105,000 per new home and its growth in distributable earnings to be 2-4% instead of the forecast 7%.
Rental growth is expected to stay at 4%, the mid-point of their 3-5% target range.
CEO Trent Ottawa says they haven’t aggressively discounted their prices to jumpstart their short-term settlement rate however and plan to continue their strategy of growing their long-term revenue through new home settlements and acquisitions.
Gateway has settled four properties including 488 long-term occupied sites and 393 development sites recently, including their $45 million acquisition of two communities in SA and the recent purchase of a 6ha development site approved for 151 homes in Yarrawonga, Victoria, for $4.5 million.
Gateway was established in 2009 and listed in July 2015 with 36 communities. They now have 58 communities across QLD, NSW, ACT, VIC and SA, over 7,100 long-term-occupied sites and another 1,800 in development.
